Benchmark stock market indices ended flat on Tuesday, with losses in information technology offsetting gains in consumer, auto, and financial stocks. Persistent concerns over the US. H-1B visa fee hike and tariffs weighed on investor sentiment, while robust domestic demand and earnings optimism lent support to other sectors.
The S&P BSE Sensex slipped 11.83 points to 82,102.1, while the NSE Nifty50 settled 32.85 points lower at 25,169.50. The broader small- and mid-cap indices also lagged, declining 0.5% and 0.4%, respectively.
Nine of the 16 major sectors closed lower. The IT index, which carries the second-highest weight in the benchmarks, slid 0.7%, extending Monday’s 3% sell-off. Companies in the sector remain under pressure as most of their revenues come from the U.S., where a $100,000 fee on new H-1B visas could increase operating costs.
On the upside, financials gained modestly, with the Nifty Financial Services index up 0.1% and banks rising 0.4%. Bajaj Finance and SBI rallied 1.9% and 2.8%, respectively, after CLSA highlighted them as top picks due to strong loan growth, improving margins, and sustainable performance. Private lender Axis Bank added 2.3% after HSBC raised its price target, citing an improving earnings outlook.
The auto index climbed 0.6%, closing just below its record high, buoyed by strong footfalls across dealerships during Navratri, coinciding with recent GST cuts. Metals gained 1% as Nomura reaffirmed its bullish stance on domestic steel.
Vinod Nair, Head of Research at Geojit Investments, noted, “The domestic equity market traded rangebound and ended flat, indicating continuation of the consolidation. Broader sentiment stayed cautious, with small- and mid-cap stocks lagging the benchmarks. Sector-wise, autos, metals, and financials gained on signs of robust festive demand post-GST cuts, while FMCG and realty stocks came under pressure from profit booking.”
“The rupee hit a record low amid persistent FII outflows, exacerbated by ongoing concerns over US tariffs and a widening trade deficit. Global uncertainties and prospects of a Fed rate cut boosted gold’s safe-haven appeal. On the positive side, 8 core industries’ strong production data underscores the resilience of the domestic economy, supporting optimism around external challenges,” he added.
The rupee also slid to an all-time low amid rising US tariffs and the H-1B visa fee hike, reflecting pressure from ongoing foreign fund outflows and trade concerns.
